Some people think it's an easy way for
buyers to get a real great deal on a house. Sellers think it's a
way out of their mortgage headache.
Well the truth is...their both right. The
challenges faced by both buyer and seller, is that a lot has to happen for a short sale
to actually close, and it is not always a pleasant transaction. It
requires a lot of negotiations, and could take some time for everything to fall into
For the seller: There are many ways to sign away home
ownership in a manner that can destroy your credit, embarrass the
family and affect your dignity. Foreclosure and bankruptcy comes to
mind first. However there is an alternative, and it's called a
"Short Sale". In Staten Island as well as in the entire United
States, short sales are happening every day. That's how prominent
Short Sales have become.
Basically, the lender agrees to a sale price between the seller and
the buyer and agrees to accept less than
the entire amount due them. This allows for a new deed to be transferred
to the buyer with no resulting conditions.
However, not all lenders will participate in a short sale,
especially if foreclosure
on the property is better for them than a discounted payoff. It all depends on the
balance owned the lender, and the market value of the home.
Sometimes, the loss is too great for the lender to accept a Short
For the buyer: The person purchasing a short sale may be in a
position to pick up a great home for a reduced price. But, this does
not come without difficulties too. First of all, low ball offers will go
nowhere, because Short Sales have the same appraisal
requirements that other types of residential sales do. Actually, the
lender is quite interested in what an appraiser determines the value of
the property to be, before they agree to anything.
Another important issue is time. Lenders do not make decisions quickly
when short sales are involved, and there's usually someone higher
up-the-ladder that makes the final decision too. So it can be a very
slow process, especially in the early stages of negotiations. This by
itself can be an added expense for the purchaser if they don't evaluate their own
circumstances before entering into a short sale. For renters buying
a short sale, they
could get hit with additional rent and penalties. If a
landlord wants the apartment back when you said you would return the
keys, but because of delays you can't leave, it could be costly to
the renter. Also,
if a buyer secures a rate lock too soon with their own lender and
the rate lock is
expiring, you'll need to pay
for another one.
An an issue that also frequently arises, is that the first appraisal
on the property could time-out due to delays, and another appraial has to be
ordered and pay for. This more recent appraisal is done to reveal any changes in the
property's value. There are other things that could delay a short sale from
closing, and a common one is that the seller may be indebted to
others that have a direct affect the Title of the property.
If your a short sale candidate, either a buyer or seller, then you
need to use a Realtor
with short sale experience, and has the patience to see the deal through
to the end for everyone concerned. A good Short Sale agent will assist in finding out all that can be
learned about the property, and help with any obstacles or issues that may arise. A good short sale
agent knows where to look, and what information is important
to learn. This plays an important role in the transaction,
and it helps buyers and sellers focus on other things.
When a short sale is closed, the lender might issue an IRS 1099
form to the seller as income for the differential or loss to the
lender, and therefore income to the seller. A short sale seller
should consult with an accountant as to any additional debt that may
be incurred from a short sale transaction.
We would like to say that we provide the best short sale service that we
can to all our customers and client's. And it's based on all our
years of experience and training, so we feel that we can assist you
with short sale transactions. If you want to know more or have
some questions you can call us directly at 718 967-2600 and mention
that you are interested in short sale help.
® Property of: V.I.P. Real Estate, Inc.
You can also use the
easy form to reach us. click here
Residential & Commercial Specialists The Real Estate Team V.I.P. Real Estate, Inc.
We offer short sale assistance to
Staten Island homeowners.
Staten Island Short Sale assistance. Let us guide you
throught the Short Sale process in Staten Island, NY